9 May 2011

Skyworks’ revenue exceeds guidance, up 37% year-on-year

For its fiscal second-quarter 2011, Skyworks Solutions Inc of Woburn, MA, USA, which makes linear products, power amplifiers, front-end modules and radio solutions for handset and infrastructure equipment, has reported revenue of $325.4m (exceeding guidance of $310–320m). This is up 37% on $238.1m a year ago and down only 3% on last quarter’s record of $335.1m (compared with normal March-quarter seasonality of down 10–15%). The top customers were Foxconn, Nokia and Samsung.





“Sequential revenue performance demonstrates how a diversification strategy and growth in new market segments are contributing to stronger financial results,” comments president & CEO David Aldrich.

On a non-GAAP basis, gross margin has increased from 42.3% a year ago to 43.9% (slightly above the forecast 43.8%, but down on 44.7% last quarter). Net income was $78.7m, up on $44.2m a year ago but down on $84.7m last quarter.

Cash flow from operations was $92m. During the quarter, the firm ended the quarter nearly debt-free, with cash balance rising from $450m to $504m. This followed capital expenditure of $32m (reflecting process investments to complement existing assembly & test capacity). “We have completed the majority of our capacity investments in Mexicali, and we anticipate that CapEx will begin to moderate back towards maintenance level over the next couple of quarters,” says VP & chief financial officer Donald Palette.

During the quarter, Skyworks secured analog design wins with STMicroelectronics for their next-generation IP television chip set reference design; ramped production of precision analog ICs supporting enterprise access points, cable set-top boxes and wireless video systems for Motorola and Cisco among others; supported General Dynamics with high-power switching solutions for military land mobile radios; captured multiple infrastructure sockets with Ericsson, Huawei and ZTE for WCDMA base-station transceivers; launched a family of antenna switch modules for smart-phones, tablets and datacards supporting 3G handsets and HSPA+/LTE-enabled devices; and powered HTC's next-generation Android-based smart phones and newest tablet offering with front-end solutions. Skyworks was also the first semiconductor firm to receive the 2010 Best Quality award from Samsung for excellence in overall product quality and supply-chain efficiency

“Skyworks is capitalizing on consumers’ skyrocketing demand to be connected anytime and anywhere via smart phones, tablets and home automation systems in addition to energy management solutions and supporting network infrastructure,” says Aldrich. “The growth in analog semiconductor content associated with this increasing demand plays directly to Skyworks’ technology leadership and scale,” he adds.

“Based on our broad customer base, diversification into new markets and increasing share gains, we are again planning to grow faster than our addressable market in the third fiscal quarter of 2011,” says Palette. Skyworks expects revenue to rise 6% to a record of about $345m, with gross margin bouncing back up to 44.5–45%. “Third-quarter guidance puts us squarely on a path to approach a $1.5bn revenue run rate with $2 in annualized EPS by the end of this fiscal year,” he adds.

“We fully expect momentum achieved in the first half will translate into further market share gains during the remainder of the fiscal year throughout fiscal 2012 and beyond,” says Aldrich. “Our strategy of diversifying across base-band partners, among OEM customers and new vertical markets while continuously improving operational execution is clearly working.”

See related items:

Skyworks grows revenue 7% to record $335.1m

Skyworks’ revenue exceeds revised guidance; up 14% to record $313.3m

Skyworks grows revenue 44% year-on-year to $275.4m

Skyworks' March quarter beats guidance with 38% year-on-year growth

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